The townspeople believe that Ted is the werewolf responsible for the killings in Pioneertown, and corner him in a house. Pappy's daughter, Cheryl manages to get into the house, apparently intending to help Ted, but slips up and reveals herself as the werewolf. She transforms and tries to kill Ted, but the gang that intended to lynch Ted ends up killing her. The movie then ends with the locals apologizing to Ted and letting him take part in a linedance.
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